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Conceptual Overview: Explore the value of fixed-interest coupon bonds of different terms. This graph shows the value of 10% co on bonds of diferent terms

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Conceptual Overview: Explore the value of fixed-interest coupon bonds of different terms. This graph shows the value of 10% co on bonds of diferent terms across differing market interest rates. Each bond pays INT+ $100 at the end of each year and returns M- $1,000 at maturity. For comparison, the blue line depicts the value of a one-year bond The term of the other bond in years may be changed using the slider. Drag on the graph to change the current mairket interest rate Fa) at which the bond (orange curve) is evaluated 15 $100$1000 - 1,000 1 (1+0.1007" (1+0.100)

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